UAE’s unemployment insurance explained: Types of schemes, salary categorisation, premiums, payout
All your questions answered about programme that offers financial support if you lose your job
Emiratis and expats employed in the private sector and federal government departments will soon get a form of social security if they suddenly lose their jobs. The Unemployment Insurance scheme will offer financial support of up to three months if an employee is terminated.
Here is all you need to know.
When can employees subscribe to the scheme?
They can become part of the scheme from January 1, 2023.
What types of schemes are available? What are the premiums and compensation amounts for each?
There are two categories:
>> Those with a basic salary of Dh16,000 and less.
Premium: Dh5 per month or Dh60 annually
Compensation: Not more than Dh10,000 per month.
>> Those with a basic salary exceeding Dh16,000
Premium: Dh10 per month or Dh120 annually
>> Compensation: Not more than Dh20,000 per month.
Are payments made monthly? Who pays them – employees or employers?
The premiums can be paid monthly, quarterly, half-yearly, or annually. Premiums for the scheme are paid by the employees themselves and, therefore, do not pose any additional expenses on firms.